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Delta revenue up 14%, returns to profitability in 4Q2010

19-Jan-2011 11:34 AM

Delta Air Lines revenue up 14% - financial/traffic highlights:

  • Three months ended 31-Dec-2010:
    • Revenue: USD7789 million, +14% year-on-year;
      • Passenger: USD6668 million, +15%;
      • Cargo: USD236 million, -7%;
      • Other: USD885 million, +14%;
    • Operating costs: USD7495 million, +9%;
      • Fuel: USD1928 million, +13%;
      • Labour: USD1708 million, +1%;
    • Operating profit: USD294 million, compared with a loss of USD46 million in p-c-p;
    • Net profit: USD19 million, compared with a loss of USD25 million in p-c-p;
    • Passenger traffic (RPMs): +6%;
    • Passenger load factor: 81.1%, -0.6 ppt;
    • Passenger yield: USD 14.42 cents, +9%;
    • Passenger revenue per ASM: USD 11.69 cents, +8%;
    • Cost per ASM: USD 12.83 cents, +2%;
    • Cost per ASM excl fuel and special items: USD 8.52 cents, -2%;
  • 12 months ended 31-Dec-2010:
    • Revenue: USD31,755 million, +13%;
      • Passenger: USD27,258 million, +14%;
      • Cargo: USD850 million, +8%;
      • Other: USD3647 million, +5%;
    • Operating costs: USD29,538 million, +4%;
      • Fuel: USD7594 million, +3%;
      • Labour: USD6751 million, -1%;
    • Operating profit: USD2217 million, compared with a loss of USD324 million in p-c-p;
    • Net profit: USD593 million, compared with a loss of USD1237 million in p-c-p;
    • Cash and cash equivalents: USD2892 million, -37.2%;
    • Total assets: USD43,184 million, -1.4%;
    • Total debt and capital leases: USD15,252 million, -11.3%;
    • Passenger traffic (RPMs): +2%;
    • Passenger load factor: 83.0%, +1.0 ppt;
    • Passenger yield: USD 14.11 cents, +12%;
    • Passenger revenue per ASM: USD 11.71 cents, +13%;
    • Cost per ASM: USD 12.41 cents, +3%;
    • Cost per ASM excl fuel: USD 8.27 cents, stable;
  • 1Q2011 forecast:
    • Operating margin: 1% to 3%;
    • Fuel price including taxes and hedges: USD2.60;
    • Capital expenditure: USD375 million;
    • Total liquidity: USD5300 million;
    • Cost per ASM excluding fuel: stable to +2% year-on-year;
    • Capacity: +5% to +7%;
      • Mainline: +6% to +8%;
        • Domestic: stable to +2%;
        • International: +12% to +14%. [more] [more – Perspective]

Delta: "Through the momentum we built in 2010, we expect to maintain our March quarter margins year over year despite more than USD350 million in higher costs from the recent steep run-up in fuel prices. Industry-wide fare increases, combined with growth in Delta's ancillary products and services, will provide a more long-term, revenue-based solution to addressing the high fuel environment,” Ed Bastian, President. Source: Delta, 18-Jan-2011.